January 24, 2025

On January 23, 2025, the Supreme Court temporarily halted a nationwide injunction against the enforcment of the Corporate Transparency Act ("CTA") issued in Texas Top Cop Shop, Inc. However, despite the Court's action, a separate nationwide injunction issued by a different federal judge in Texas (Smith v. U.S. Department of the Treasury) remains in effect. FinCEN has acknowledge the continuing ban on enforcment in a January 24th update to its website (https://fincen.gov/boi):

In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.

As the legal landscape of the CTA continues to change, clients with reporting obligations should remain fully engaged with all updates and be prepared to act accordingly. Gilpin Givhan remains committed to tracking the latest developments with the CTA and will continue to provide updates as the situation unfolds.